Solid Afrezza Sales Affirm Why Mankind Corporation (NASDAQ:MNKD) Is Flying High
Mankind Corporation (NASDAQ:MNKD) reported impressive fourth-quarter and full-year results likely to strengthen investor confidence at the back of an impressive start to the year. The small biopharmaceutical has been on an impressive run, rallying by more than 60% since the beginning of the year after a 70% plus rally in 2020.
Afrezza Sales Growth
The exceptional fourth-quarter results were mostly driven by a 30% increase in Afrezza’s net sales growth that totaled $10.1 million. Total revenues came in at $18.4 million. The quarter’s sales growth was driven by higher product demand thanks to a favorable mix of Afrezza cartridges. Full-year revenues totaled $65.1 million, with Afrezza’s net revenue accounting for nearly half of the total revenue at $32.3 million.
Afrezza’s gross profit more than doubled to $6.4 million compared to $3.1 million reported a year earlier. The 105% increase was down to increased revenue and a reduction in the cost of goods sold. Afrezza’s full-year gross profit totaled $17.2 million, translating to a 53% gross margin.
However, the company plunged to a fourth-quarter net loss of $26.4 million or $0.11 a share, nearly double a net loss of $14.3 million or $0.07 a share reported a year earlier. The wider than expected net loss was down to the write off of in-process research and development related to the acquisition of QrumPharma.
During the quarter, Mankind expanded its pipeline into the development of inhalation treatments for chronic and recurrent pulmonary infections with the acquisition of QrumPharma.
Buy Rating
Amid the exceptional financial results, Mankind continues to enjoy favorable ratings on Wall Street. BTIG analyst Robert Hazlet has already doubled his share price target of the stock from $4 to $8, backed by a buy rating.
According to the analyst, the company’s potential treatment of idiopathic pulmonary fibrosis Treprostinil Technosphere can be a key driver of top line and bottom line. The analyst expects the treatment to generate net sales of upwards of $1 billion. In the first nine months of 2020, Mankind recorded $46.7 million in sales from the therapy.
